Australian Property

Hello Westpac: The bank said it would lift rates on variable rate loans for owner-occupiers with principal and interest payments by 3 basis points and for owner-occupiers with interest-only loans by 8 bps.

Roger Montgomery has penned a great article today on his website, entitled Hold on tight: the great property sell-off has begun, which includes (among other things) a very good explanation of the ‘greater fool’ theory of real estate investment: Property income yields are at historic lows and yet property buyers couldn’t be more enthusiastic.

By Leith van Onselen If you want iron clad proof that Malcolm Turnbull is a housing affordability phony, check out yesterday’s interview with 2GB’s Ben Fordham: BEN FORDHAM: I’ve got a few other things I want to throw your way.

From Morgan Stanley: NAB has repriced home loans more than peers in the past year and its SVRs are now the highest of the majors, with a ~20bp premium on IPL.

By Leith van Onselen The Reserve Bank of Australia (RBA) yesterday released its quarterly Bulletin, which included some interesting analysis of housing ‘shrinkflation’: the unusual phenomenon whereby housing turnover falls as dwelling prices rise.

From NAB: NAB has today announced a range of changes to its home loan interest rates, including a new special fixed rate for first home buyers – the lowest rate ever offered by NAB – and increases to interest rates for new and existing owner occupier and residential investor borrowers.

By Leith van Onselen The peak body for the tax profession has thrown its hat into the ring on housing policy, calling for the pre-1999 treatment of capital gains tax (CGT) to be reinstated and opposing the proposal to allow first home buyers (FHBs) to access their superannuation to purchase a home.

In a recent post I explained how home rents are mostly wasted spending arising from futile price-competition amongst potential tenants.

By Leith van Onselen Shameless as always, “Highrise” Harry Triguboff has repeated his call for the federal government to permit first home buyers (FHBs) to access their superannuation to fund a housing deposit.

Via the AFR:  Property investors who are “materially dependent” on income generated from renting their property face steep increases to interest rates in the coming years, as banks respond to global regulatory changes that will require them to hold higher levels of capital against such loans.

By Leith van Onselen With the release of the ABS’ housing finance data for November, it is an opportune time to once again plot CoreLogic’s dwelling price series against the total value of finance commitments (excluding refinancings) as measured by the ABS.

From Craig James on today’s Westpac Consumer Sentiment: Aussies have got the message.

By Leith van Onselen Australia’s superannuation industry has signaled it will fight hard against any move to permit first home buyers (FHBs) to access their superannuation to fund a housing deposit, as speculation mounts that the Turnbull Government will include such measures in the upcoming May Budget.

From the Q and A yesterday in following the speech by Assistant Governor Michele Bullock: “We are watching it because investors can be the first ones to get out if things turn down,” she said, warning that a rush for the doors could make a slump “much bigger than it would otherwise be”.

By Leith van Onselen The Australian’s Adam Creighton has joined me in decrying the Turnbull Government’s proposed housing gimmick of allowing retirees to downsize from their large family homes without affecting the assets test for the Aged Pension or their superannuation caps: A new piece of feel-good idiocy is about to emerge, it seems.

By Lindsay David, cross-posted from the LF Economics Blog: Australia has a gigantic housing bubble, fuelled by two decades of reckless debt issuances by our deregulated, yet highly protected, banking and financial system.

By Leith van Onselen As Sydney home values continue to hyper-inflate: A Freedom of Information (FOI) request has revealed that foreign buyers have hoovered-up 11% of home sales.

By Leith van Onselen The Turnbull Government’s defacto housing spokesman, Michael Sukkar, has given the strongest indication yet that the Budget will allow first home buyers (FHBs) to access their superannuation to fund a housing deposit.

From Moody’s: Looking ahead, Moody’s expects delinquency rates for Australian prime residential mortgage-backed securities (RMBS) will continue to rise moderately in 2017.